Predict Subscription Based Churn

Telecommunications Marketing / Sales Churn/Retention Improve Customer Experience Increase Revenue Churn / Retention Executive Summary
Predict subscription based churn in order to take a proactive approach to relationship management.
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Business Problem

According to PWC, the average turnover for cell phone plan subscriptions is 48 months. In an industry that generates a majority of its revenue from cell phone plan subscriptions, this high degree of customer churn will lead to uncertainty in future cash flows. A majority of this churn is attributed to lower price points and more personalized plans from competing providers. As customer churn continues to increase in the telecommunications industry, it is integral for providers to develop effective customer retention tactics.

Intelligent Solution

AI will help your organization predict whether or not a subscriber will churn within a specified time period. Your organization will be able to develop insights from past data as to the unique characteristics of subscribers that lead to churn, allowing you to take proactive measures to avoid preventable churn. For example, you can offer coupons or incentives to subscribers that have a high risk of churn, decreasing the likelihood they will eventually leave. Additionally, AI will allow you to learn the biggest drivers of churn in order to allocate resources to improve customer retention. For example, learning that one of the biggest drivers of churn is poor network connectivity, will allow you to increase customer retention by improving network connectivity. Overall, this allows you to ensure that the customers you’ve spent a lot of money acquiring can also be retained, securing a more sustainable base of subscribers and greater long term revenue. The information provided by AI will allow your business leaders to develop better marketing strategies and promotions that better align to the needs of your subscribers, enhancing your relationship with your customers.

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